Single Moms and Finances: 3 Steps to Dump Debt for Good

Hello readers! I am excited to be back with another post for you! It has been too long, but the drought is over!

As single moms, our financial situation is up to us. We are the only ones providing an income. Even if you receive some type of child support, it is only just a portion of what it takes to raise children in this day and age. However, instead of seeing this in a negative light, look at it in a positive light! It is up to YOU! You are the only one that is charge of SPENDING your money, too! So your success financially is solely up to you, so let’s take charge and implement these 3 ways to dump debt for good!

Step 1: Take Stock of your Current Situation

If you don’t know your current financial situation, it is important that you take the time to understand it. This is a simple exercise to do, but one that cannot be skipped if you truly want to change your financial situation. Get a sheet of paper and draw a line down the middle. On the left side of the paper, write down your monthly income. Include all income sources, including child support.

On the right side of the paper, write down an estimated amount of monthly expenses. This might not be easy to do if you’re not budgeting, but look through last month’s statement or your expenses online and add them up to get the final figure. Also include on the right side of the paper your current debts. Do not write down the monthly payment amount! Instead write down the current balances. Do this for all credit cards, car notes, other loans, mortgage, etc. Now sit back and take a look at this.

Step 2: Get Honest

I really want you to take a look at the left side of the page, and the right side of the page. Ask yourself these questions:

Do I like the story my money is telling me?

What does the future look like if I maintain my current income and spending behaviors?

Do I need to make a change?

If the answer to question #3 is YES, then I am here to help you! First of all, congratulations on being honest, because a LOT of us single moms find ourselves in a difficult financial position, but just like any problem, there are always solutions!

Step 3: Make a Plan and Start your Engines!

If there is anything that inspires me about single moms, it is the fact that we are among the most resourceful beings that are on this planet. We make it happen day after day, and with your financial life, there is no exception to this rule. Though I’ll be sharing more about specific items to include in your plan, today let’s focus on making a plan.

These are the essential ingredients to a financial plan:

Determine How to Reduce your Monthly Spending

Look over last month’s expenses to see what can be eliminated or reduced. This is very important. One idea to control spending in these areas is to set yourself a budgeted amount for this spending (perhaps it’s eating out or Starbucks coffee) and go get that amount of money out of the ATM in cash. Put it in an envelope, and when the envelope is empty, the spending is over.

Determine a Way to Create Income

Most of us single moms are like most other adults. We work as employees. Though this is a mostly secure position to be in, we are also trading time for money. Think of creative ways that you can increase your income. For me, I blog and I am also a consultant with Thirty-One Gifts. These avenues create additional income steams for me to put me in a better financial position now and help me to pay more aggressively on my debt. What are your ideas for creating more income?

Start Your Engine

Write down your plan, both from a spending perspective (how you will reduce your spending) and your ideas for creating extra income. Spend time over the next 24 hours looking over your plan and thinking about it. Create a plan of attack in your mind. How will you accomplish these things? What needs to change in your schedule to accommodate this new plan?

I hope these ideas have helped you create your own plan so you, too, can become a financially successful single mom!

I would love to hear your ideas on areas you struggle with concerning single parenting. I would also like to better understand the content you would find most helpful as you continue along your single parent journey.

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